Key Takeaways
Reduce holiday gift stress with presents that promote financial literacy and long-term value.
Books, games, and investment tools can teach children and teens practical money skills in engaging ways.
Involve your family in financial planning to empower the next generation with confidence and responsibility.
If you’re like many people, holiday gift-giving often adds unnecessary anxiety to an already stressful time of year. But when it comes to the young people in your life, why not give presents that put them on a path to long-term financial success? Isn’t that better than spending money on disposable gifts that might get returned or ignored? Teaching kids good money habits early on is more critical than many realize. By the time young people enter college, nearly four in five (78%) say money worries are causing them significant stress, according to Experian research. The study also found that money worries cause six in ten (60%) students to avoid social activities with friends, and nearly half (46%) are so anxious about money that they avoid checking their bank balance altogether.
Fortunately, there are some simple and fun ways to get the young people on the path to smart saving, investing and wealth-building habits. At Novi, we always like to recommend a piggy bank as a gift when someone has a baby to instill those habits early. Here are some other ideas to get you in the financially savvy Holiday spirit.
Books
Books make timeless gifts and can teach financial concepts in a relatable way. Here are some great options:
For younger kids: The Lemonade War and The Smart Girl’s Guide to Money introduce basic money concepts in engaging stories.
For teens and young adults: The Millionaire Next Door and I’ll Teach You to Be Rich offer practical advice for building wealth and managing finances.
Bonus idea: Consider the board game Escape from Barter Island (listed below), which combines storytelling with financial lessons.
Games
Games are an excellent way to make learning about money fun and interactive. Here are recommendations by age group:
Grades K-5
Before kids can focus on more complicated concepts like saving and investments, they should learn the basic concepts of what money is and what different bills and coins are worth. These games can help:
Monopoly Junior introduces kids to basic banking and real estate concepts.
Money Bingo teaches coin values and math skills in a virtual bingo format.
Escape from Barter Island explains the concept of bartering and why currency is more practical. (Note: Younger kids may need help reading.)
Grades 5-8
Financial Football combines financial literacy lessons with America’s favorite sport. (Soccer fans can play an alternate version.)
Hot Shot Business lets kids run a business in a simulated city, tackling challenges and enjoying successes.
Lights, Camera, Budget puts kids in the role of a movie producer managing a $100 million budget.
Break the Bank simulates the role of a community bank officer, helping customers save and get loans.
Hit the Road is a road-trip game that emphasizes budgeting, saving, and managing debt.
High School and Beyond
ZOGO incentivizes financial learning with gift card rewards. It covers topics like car buying and stock market investing.
Get a Life allows players to create budgets and make life decisions based on a chosen career.
The Stock Market Game simulates real-life investing, risks, and portfolio management.
Invest Quest challenges players to deepen their understanding of good investment strategies.
Misadventures in Money Management is an interactive graphic novel that helps players navigate financial pitfalls.
Payback simulates career and education choices, factoring in student loans and potential job outcomes. Parents can play along, too.
Gifts to Future Goals
In addition to money-oriented books and games, you can help finance a child’s or grandchild’s future goals by contributing to their (college saving) 529 Plan. For older children or grandchildren who are working, you could help fund their Roth IRA. If you're a grandparent, you could set up a custodial account and gift stock to your grandchild to help them get started on investing. Better yet, you could tell the child either to keep the stock you gave them fully invested, or cash it in to invest elsewhere. Just try to encourage them to be smart with the money. It's also a good test to see how responsibly kids will handle a financial windfall. Do they blow it all? Do they keep it invested? Those decisions give parents a good idea of how financially responsible the kids will be as adults.
Fun Money Gifts
Collectible coins (especially if from an older relative in the family).
A small gold bar teaches kids about tangible assets and holding on to them for the long-term in order to realize a significant increase in value.
Cash in a jar (rainy day jar) can help younger kids save for a specific goal such as a bike or smartphone or concert tickets to a favorite pop star.
Money Savvy Piggy Bank has four separate slots for saving, spending, donating and investing.
Starting a Robinhood online brokerage account (if over 18) and putting some money in the account can get them started on investing.
Gift card for a one-hour session with a financial planner.
Online subscriptions to courses in personal finance (e.g. Masterclass).
Conclusion
In today’s instant-gratification, disposable society, why not give a gift that keeps on giving by teaching responsible money habits in a fun and engaging way? If you or someone close to you has concerns about a child or grandchild’s financial responsibility, reach out any time. I’m happy to assist. Discover holiday gifts that teach financial literacy and long-term value. From book
DAN SATZ MS, CFP® is a Partner at Novi Wealth
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